Insurance rate hikes likely in B.C., Alberta in wake of floods, fires

Insurers look at trends over time to set rates, IBC says

Wildfire evacuees McLean Rislund, 80, and June Rislund, 81, from Forest Grove near 100 Mile House, walk to an evacuation registration centre in Kamloops, B.C. on Monday. So far, more than 14,000 people have been affected by evacuations province-wide due to fire. (Darryl Dyck/CP)

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If you live in Western Canada, your home insurance rates are likely going up again soon, a top industry official says.

Insurers set their rates by region, looking at patterns in that area over time.

Given that B.C. and Alberta have been hit with repeat fires and floods in recent years, the Insurance Bureau of Canada said it's almost certain rates will be hiked.

"No single event can be attributed to climate change, but the fact we're having increasing severe weather events across Canada fits with the predictive model — the probability of future events is now higher," said Craig Stewart, vice president of federal affairs.

"You can expect that rates will start to rise."

Nevaeh Porter, 8, looks over the remains of her home where she lived with her mom and grandparents. It was destroyed by wildfire on the Ashcroft First Nation in early July.

In June, much of the province's Interior was hit hard by flooding. There were evacuations then, too.

Disasters like those have cost insurers billions of dollars in claims to homeowners who have lost homes and property as of late. The massive wildfire in Fort McMurray cost companies more than $3.5 billion alone.

Stewart said it will be months before the total cost of the losses in B.C. will be tallied. But going forward, he thinks officials can do more to help residents protect themselves.